Economic sentiment falters: Survey

Following an improvement in sentiment surrounding the economy in March, perceptions about the economic climate declined in April. 

According to the latest LMD-Nielsen Business Confidence Index (BCI) survey, 27% of respondents expect conditions to improve in the next 12 months – down from nearly half in the prior month.

Meanwhile, a majority (63%) of those surveyed say the economy will ‘stay the same’ during this period and another 10% believe conditions will deteriorate.

In contrast, the outlook for business prospects has improved with 81% (up from 72% in the previous month) of those polled by Nielsen saying sales volumes will increase over the next year and only 2% believe sales will decline (versus 12% in March).

Short-term prospects also appear to have improved with 60% of those consulted by the pollsters anticipating an improvement in sales volumes over the next three months – marking an increase from nearly half in the preceding month.

However, LMD notes that the exclusive monthly survey was conducted in early April – before the festive season and spike in COVID-19 cases thereafter.

Meanwhile, the investment climate continued to deteriorate as a mere 8% (compared to 15% in the previous month) of respondents view conditions favourably. A majority (81%) do not consider this to be a good time to invest with 11% describing conditions as ‘fair’.

The publisher of LMD, Media Services, says the May edition of the magazine has been released. Its digital edition is also available on WhatsApp and the publisher’s social media platforms.

Its Cover Story features an exclusive interview with the CEO of Standard Chartered Bank in Sri Lanka Bingumal Thewarathanthri, in which he assesses the performance of Sri Lanka’s banking sector against the backdrop of the pandemic and its role in supporting an economic revival (for the full story, log onto www.LMD.lk).